Summary:

Mr. Rammohan Naidu, Union Minister for Civil Aviation, reaffirmed the government's commitment to strengthening India’s MRO industry for both domestic and international airlines. Addressing issues in the Lok Sabha, he emphasized efforts to attract major airlines to India’s MRO services, particularly in key locations like Thiruvananthapuram. The new GST reform, which standardizes MRO component pricing, aims to integrate local MROs into global value chains. India’s MRO industry is projected to grow from $2 billion to $4 billion in seven years.

The Ministry of Civil Aviation has announced key initiatives to boost the MRO sector, including the potential expansion of the Production Linked Incentive (PLI) scheme to accelerate growth. Recent GST reforms, which include a unified IGST rate of 5% on aviation components, are designed to simplify taxation and drive the industry to a $4 billion valuation by 2031. Support measures include developing MRO facilities across India, extending the export period for repair items, and allowing 100% FDI to enhance efficiency and global competitiveness.

Source: IBEF 

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